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coursework mind map: Post-war reconstruction under the Labour Government…
coursework mind map: Post-war reconstruction under the Labour Government 1945-51
nationalisation
Attlee nationalised 8 different businesses after the war including: Bank of England, civil aviation, coal, cable and wireless, transport, electricity, gas and iron and steel.
the nationalisation of the mines was greeted with particular enthusiasm by some of the workers. believed there was a fundamental shift in power from capitalism to the state.
there were substantial sums in compensation paid out to previous owners of the mines the figure adding up to £164600000. This then created a fall in the profits the mine industry could have created as they needed a large investment to carry on following the struggle in the war.
the methods of nationalisation was not to direct state control instead public cooperation's such as the BBC were created in which the state had set up but the companies were allowed to make the decisions. most were not making profits anyway so the state simply underwrote losses.
most of the industries had some form of previous state interface or control in wartime so nothing was new for many industries. many of the industries were not in profit and needed a lot of investment. even though national control went against conservative philosophy, there was only as significant and sustained opposition to the nationalisation of iron and steel and this was the only nationalisation reversed after the conservatives returned to power in 1951
Alan Sked and Chris Cook pointed out in their 'post war Britain: a political history' (1993) Labour had few plans established for nationalisation before 1945 and little developed overall economic planning.
National Insurance 1948
since 1942 labour was committed to a comprehensive scheme of social security which would provide adequate payments to ensure a minimum standard of living. in addition there should be payments to assist with bringing up children in the form of Family Allowances and a NHS in which there was a right for everyone to have access to appropriate medical care.
the conservatives criticised the scheme at the time because:
-it ignored the developed system of private insurance that existed so those paying private insurance couldn't opt out of the national one.
-critics argued a more selective targeting of welfare for those who really needed it would have been a better use of resources.
on the left there were also criticisms as the system was not based on need but on the old insurance principle in which the payments were expected to cover the costs. the benefits were too low particularly for those who fell outside the insured system because they had been unable to make payments and relied on national assistance.
the act formally ended the old Poor Laws and made provision for those who did not pay national insurance, such as the homeless, long term unemployed, disabled or the elderly that needed more money to live. there was substantial assistance with rent as well as money for basic needs.
the act introduced a compulsory insurance scheme which divided the population into those who were employed, self employed and unemployed. a number of contributions were necessary before any payments could be made to cover sickness benefit and unemployment benefit. insurance contributions also gave access to burial grants, maternity benefits, orphan and widow pensions and old age pensions.
from leaving school to retiring all would be enrolled in the insurance scheme which had begun in 1911 and had been extended into the inter war period. the new act offered twice as many benefits and went further than Beveridge in increasing pensions to 25 shillings a week for a single person and 42 for a married couple.
the creation of the NHS
the work of Aneurin Bevan, minister of health and former miner.
the national health act was passed in 1946 and came into operation in 1948 and the fact that it did is testament to Bevan's determination
the system entitled everybody free of charge to medical care from general practitioners.
doctors and dentists had large ques from people who had never seen either of these before.
it came with some limitations as prescriptions rose to 13.5 million in September 1948 compared to 7 million per month before the NHS was created. By 1950 the NHS was costing £358 million a year.
national assistance act
provided financial assistance for the unemployed or for those who couldn't pay enough towards the national insurance scheme like the elderly.
the limitations were that it was means tested and the amount of financial assistance received depended on the amount of money your family had. the benefits received were also set too low
industrial industries act 1946
provided financial relief for those who were temporarily absent from work due to injury and was compulsory for all employees.
limitations were that it was paid by the government not the employer and the government footed the bill for injuries at work
housing and squalor
new towns act 1946
12 new towns planned in order to reduce overcrowding. eight were intended to accommodate the overspill from London. these towns included Stevenage, Hertfordshire, East Kilbride and Glenrothes
the limitations were that there was still a serious shortage in housing after the period in office, high demand for housing still existed and the 1951 census revealed there were 750k fewer houses than households in Britain
housing act 1949
councils could buy houses in disrepair and make improvements.
poor housing and homelessness were still in serious problems at the end of the labour administration in 1951
education act 1944
all local authorities had to provide primary education, secondary education and further education. secondary education was compulsory until the age of 15. meals, milk and medical services were supplied at every school. and the 11+ examination was introduced.
many were concerned that academic education would be harmed by combining it with less academic subjects and children. the 11+ examination was seen as socially divisive. critics said that little had been done to enhance the opportunities for working class children.